Avidian Announces Upsize and Closing of Second and Final Tranche of $6.6M Oversubscribed Non-Brokered Private Placement
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NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
TORONTO, ON / ACCESSWIRE / June 18, 2021 / Avidian Gold Corp. ("Avidian" or the "Company") (TSXV:AVG)(OTCQB: AVGDF) is pleased to announce the upsize and closing of the second and final tranche (the "Second Tranche") of the Company's oversubscribed non-brokered private placement first announced on April 26, 2021 (the "Offering"). The closing of the first tranche of the Offering was announced on June 14, 2021 and consisted of the sale of 26,897,774 hard dollar units and 6,576,364 common shares of the Company issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) for gross proceeds of $5,218,411. Under the Offering, the Company raised aggregate gross proceeds of $6,601,677.66.
Within the Second Tranche, the Company raised aggregate gross proceeds of $1,383,266 through the sale of 2,530,000 hard dollar units (the "HD Units") at a price of $0.15 per HD Unit and 5,576,478 common shares of the Company issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (the "FT Shares") at a price of $0.18 per FT Share.
Each HD Unit issued pursuant to the Second Tranche consists of one common share of the Company (a "Common Share") and one half of one Common Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to acquire one Common share at a price of $0.20 for thirty-six (36) months from the date of issuance.
In connection with the Second Tranche, the Company paid to eligible finders an aggregate of $20,069.36 in cash and 86,202 broker warrants (the "Broker Warrants"). Each Broker Warrant is exercisable to acquire one Common Share at a price of $0.20 for a period of thirty-six (36) months following the date of issuance.
Within the Second Tranche, certain insiders of the Company have subscribed for an aggregate of 30,000 HD Units for aggregate gross proceeds of $4,500. Under the Offering, insiders of the Company subscribed for an aggregate of 2,749,635 HD Units for aggregate gross proceeds of $412,445.25. The participation by these insiders within the Offering will support the advancement of the Company's mining projects and be used for general working capital purposes. The issuance of the HD Units to the insiders are considered related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company has relied on the exemptions from the formal valuation and minority approval requirements under sections 5.5(a) and 5.7(a) of MI 61-101, on the basis that the participation by the insiders does not exceed 25% of the market capitalization of the Company.
Net proceeds from the sale of FT Shares under the Offering will be used for Canadian exploration expenses on the Company's Canadian mineral properties. The net proceeds from the sale of the HD Units will be used towards the development of the Company's mineral properties and for general and administrative expenses. The Offering is conditional upon receipt of required regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued and issuable pursuant to the Offering, as well as any compensation options issued to finders, will be subject to a four month and a day statutory hold period in accordance with applicable Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
About Avidian Gold Corp.
Avidian brings a disciplined and veteran team of project managers together with a focus on advanced stage gold exploration projects in Alaska. Avidian's Golden Zone project hosts a NI 43- 101 indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 g/t Au) plus an inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au)*. Additional projects include the Amanita and the Amanita NE gold properties which are both adjacent to Kinross Gold's Fort Knox gold mine in Alaska, and the Jungo gold-copper property in Nevada. *Technical Report on the Golden Zone Property, August 17, 2017, L. McGarry P.Geo & I. Trinder P.Geo, A.C.A Howe International Ltd.
High Tide is a private corporation that is focused on, and committed to, the development of advanced-stage mineral projects in Canada using industry best practices combined with a strong social license from local communities. High Tide is earning a 100% interest the Labrador West Iron project located adjacent to IOC/Rio Tinto's 23 mtpy Carol Lake Mine in Labrador City, Labrador and owns a 100% interest in the Lac Pegma Copper-Nickel-Cobalt deposit located 50 kilometres southeast of Fermont, Quebec. High Tide is majority controlled by Avidian.
Further details on the Company and the individual projects, including the NI 43-101 Technical reports on the Golden Zone property and Labrador West Iron property can be found on the Company's website at www.avidiangold.com.
For further information, please contact:
President & CEO
Mobile: (905) 741-5458
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain 'forward-looking statements' which are not comprised of historical facts including statements regarding the use of proceeds. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to anticipate and counteract the effects of COVID-19 pandemic on the business of the Company, including without limitation the effects of COVID-19 on the capital markets, commodity prices supply chain disruptions, restrictions on labour and workplace attendance and local and international travel, failure to receive requisite approvals in respect of the foregoing, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
SOURCE: Avidian Gold Corp.
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